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Governance &
Structure Division
 

Terms & Concepts in the Community Charter: Local Area Service

 

A local area service in Part 7, Division 5 of the Community Charter is any municipal service that is designed to benefit a particular part of the municipality and is paid for in whole or in part by local property owners through a local service tax. Local area services may be initiated either by owners of property in the proposed local area, or by the municipal council. Where initiated by council, the proposed service is subject to a petition against. Each local area service must be established by bylaw.
 

A local service tax is created by council to pay all or part of the cost of a local area service. The tax may be structured as a property value tax, a parcel tax or a combination of the two. Where developed to collect monies for a business improvement area (a specific type of local area service), the tax may be based on any factor chosen by council. The form of the local service tax ultimately chosen must be specified in the local area service bylaw.
 

The Community Charter's provisions governing local area services replace the sections on local improvements, business improvement areas and specified areas in the Local Government Act.
 

Please direct questions or comments to Advisory Services Branch.
 

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